Nature and Form of the Contract

Article 1458. By the contract of sale one of the contracting parties obligates himself to transfer the ownership and to deliver a determinate thing, and the other to pay therefor a price certain in money or its equivalent. A contract of sale may be absolute or conditional. Seller obligates himself to deliver and the buyer binds himself to pay the purchase price. CHAPTER 2 Essential Requisites of Contracts Article 1318. There is no contract unless the following requisites concur: (1) Consent of the contracting parties; (2) Object certain which is the subject matter of the contract; (3) Cause of the obligation which is established. In a contract of sale the essential requisites of contracts must be present. What is a sale of hope? Is a sale of current lotto ticket in the hope of winning the prize. Here, the object of the contract is the hope itself. The sale is valid even if the buyer does not win the prize because it is not subject to the condition that the hope will be fulfilled. What is a vain hope? Ex. A person buys a lotto ticket already drawn. (mana ang bola) .

Article 1459. The thing must be licit and the vendor must have a right to transfer the ownership thereof at the time it is delivered. (n)

Requisites concerning object: 1. Determinate (art.1458, 1460) 2. Licit or lawful, that is, it should not be contrary to law, morals, good customs, public order, or public policy (arts. 1347) 3. Not impossible (art. 1348) Article 1462. The goods which form the subject of a contract of sale may be either existing goods, owned or possessed by the seller, or goods to be manufactured, raised, or acquired by the seller after the perfection of the contract of sale, in this Title called "future goods." There may be a contract of sale of goods, whose acquisition by the seller depends upon a contingency which may or may not happen. -Goods which may be the object of sale: 1. existing goods or goods owned or possessed by the seller; or 2. future goods, or goods to be manufactured (like the sale of milk bottles to be manufactured with the name of the buyer pressed in the glass) To be raised: (like the sale of the future harvest of palay from a ricefiled) Or acquired by the seller: (like the sale of a definite parcel of land the seller expects to buy) -a sale of a future goods even though the contract is in the form of a present sale, is valid only as an executor contract to be fulfilled by the acquisition and delivery of the goods specified. In other words, property or goods which at the time of the sale, are not owned by the seller but which thereafter are to be acquired by him, cannot be the subject of an executed sale but may be the subject of a contact for the future sale and delivery thereof, even though the acquisition of the goods depends upon a contingency which may or may not happen. Upon acquisition of the goods, either paraty acquires the right to demand the execution of the contract of sale. -The first paragraph of Article 1462 does not apply if the goods are to be manufactured especially for the buyer and not readily saleable to others in the manufacturers regular course of business. The contract, in such case, must be considered Article 1459. The thing must be licit and the vendor must have a right to transfer the ownership thereof at the time it is delivered. (n) Article 1459. The thing must be licit and

the vendor must have a right to transfer the ownership thereof at the time it is delivered. (n) as one for a piece of work (Art. 1467) Ex. Of things whose acquisition depends upon a contingency which may or may not happen. I can sell you now a specific car which my father promised to give me, should I pass the bar next year. Note: The moment I get the car, however, in accordance with my fathers promise you do not necessarily become its owner, for before title can pass o you. I must first deliver the car to you, actually or constructively. Article 1465. Things subject to a resolutory condition may be the object of the contract of sale. -a raesolutory condition is an uncertain event upon the happening of which the obligation (or right) subject to it is extinguished. Hence, the right acquired in virtue of the obligation is also extinguished. (Art. 1181) Ex. Sale of things subject to a resolutory condition: A sold B the formers land a retro. After delivery to B, B becomes an absolute owner subject to the right of redempin. This land may be sold by B to C, a stranger, subject to the right of redemption. i.e. C must respect the right of A to redeem the property within the stiputlated period if: 1. As right is registered: 2. Or even if not, if C had actual knowledge of the right of redemption. (It has been held that actual knowledge is equivalent to registration)